Yazılar

Emerson Electric Raises Profit Forecast on Lower Tariff Costs, Strong Demand

/in /tarafından

Engineering solutions firm Emerson Electric (EMR.N) on Wednesday slightly increased its 2025 adjusted profit per share forecast to $6, citing reduced tariff-related cost risks and robust demand for its intelligent devices segment. Despite the positive outlook, the company’s shares fell over 7% in premarket trading.

Emerson’s intelligent devices business saw revenue rise 4% to $3.13 billion during the quarter, driven by increased demand for measurement, analytical components, and pressure-relief and safety valves. Overall quarterly net sales grew 4% to $4.55 billion, slightly below analyst expectations of $4.59 billion.

The company reported a third-quarter adjusted profit of $1.52 per share, narrowly beating the consensus estimate of $1.51 per share. Emerson attributed its updated sales guidance of approximately 3.5% growth to pricing actions supported by reduced tariff expense exposure.

Headquartered in St. Louis, Missouri, Emerson remains optimistic about steady growth supported by market demand and easing trade-related costs.

Snap Shares Plunge as Ad Glitch and Competition Stall Growth

/in /tarafından

Snap’s (SNAP.N) shares fell nearly 21.5% in early trading on Wednesday following a weak quarterly performance and intensifying competition, highlighting its ongoing challenge to keep pace with AI-driven rivals.

The company’s slowest revenue growth in over a year was driven by advertisers cutting marketing budgets amid economic uncertainty and favoring larger platforms like TikTok and Meta’s Facebook and Instagram. A glitch in Snap’s ad-buying platform, which caused ads to be delivered at discounted rates, also contributed to the slowdown. Although Snap’s revenue met estimates, it was a significant drop from the double-digit growth seen over the past five quarters. Snap’s market value could fall by approximately $3.24 billion if losses persist.

Analysts at MoffettNathanson noted advertisers prefer platforms with direct access to purchase-ready users, diverse marketing tools, and clear ROI metrics — areas where Snap currently lags.

Snap’s performance contrasts with competitors Meta and Reddit, which reported strong second-quarter results, driving their shares up by 30.3% and 21.8% respectively this year, compared to Snap’s 12% decline. Following the results, at least 14 brokerages cut Snap’s price target, bringing the median to $9.

Snap is betting on its Sponsored Snaps video ad format, rolled out more broadly in June across the U.S. and other markets, which has driven increased user engagement and actions.

Morgan Stanley analysts said, “For Snap to capitalize on improvements in engagement, it must better demonstrate ad efficacy to advertisers and reduce barriers to adopting its products.”

Zebra Technologies to Acquire Elo Touch Solutions for $1.3 Billion, Raises Full-Year Forecasts

/in /tarafından

Barcode scanner and handheld device maker Zebra Technologies (ZBRA.O) announced a $1.3 billion all-cash deal to acquire Elo Touch Solutions, a touchscreen system maker, as it expands its retail-focused offerings. The acquisition follows strong second-quarter results driven by rising demand for Zebra’s devices and a recent acquisition of 3D imaging firm Photoneo.

Zebra’s shares jumped nearly 7% in premarket trading following the announcement and an upward revision of its annual revenue and profit guidance. The company benefits from increased digitization in retail and logistics, with its products aiding inventory management, warehouse operations, and shipment tracking.

The Elo Touch acquisition, expected to close in 2025, will add self-service kiosks, payment terminals, and touchscreen systems to Zebra’s portfolio, enabling frontline workers to better serve customers. CEO Bill Burns described the deal as a “next step” to accelerate frontline connectivity and estimated it expands Zebra’s addressable market by $8 billion.

Elo Touch, serving clients including JCPenney, has annual sales near $400 million. The acquisition is expected to be immediately accretive to earnings and to generate around $25 million in additional core profit three years after closing.

Zebra’s Q2 performance also benefited from lower tariffs than anticipated, with supply chain diversification across China, Vietnam, Malaysia, and Mexico helping manage costs. In April, Zebra raised prices on most North American products to offset tariff-related pressures.

For the full year, Zebra now expects sales growth between 5% and 7%, up from a prior range of 3% to 7%. Adjusted earnings per share guidance has been raised to $15.25–$15.75 from $13.75–$14.75.

In Q2, sales rose 6.2% to $1.29 billion, meeting estimates, while adjusted EPS of $3.61 exceeded expectations of $3.32.